Monday, December 19, 2022

The Freedom Manifesto - Karan Bajaj

If there's one thing about Karan, its his desire to genuinely and selflessly share his journey and his learning through the years. he chose difficult paths, challenged (challenges) himself constantly and has now ticked off all boxes for 'success'. Best selling novelist, founder of a successful startup which sold off for 300 million, Asia's head of Discovery channel. But whatever I know of him, he will not sit quietly on his success but will keep exploring his inner self, pushing boundaries (like his walks and explorations in America and Europe) and keep helping people as much as he can by using himself as an example - the good and the bad. 'The Freedom Manifesto' is his way of helping young entrepreneurs in  startup world by sharing his journey, his contacts. Pure gold.



The books is sub titled - 7 rules to live the life of your calling. Karan says look at where you specifically want to wake up in 10 years - where are you working? who with? what are you doing? Get a  clear picture and go for it.

Rule 1. The 4% rule

This is simple. To do your calling he says use this formula

Projected Annual Expense / 4%

The figure you get is the amount you must have in your bank to follow your calling. Basically he says you can live off comfortably on the 4% return on your savings.

Rule 2. Net Impact Rule

Your Net Worth = Net Impact

Net impact= Magnitude (does it touch millions) x Depth (does it meet a deep need)

Use the LOCK idea = Lead, Objectives, Conflicts, Knockout

Rule 3. Salary/14

How long will your salary last if you pursue your calling?

= Your annual salary/14 lakh = number of months you have to find a job

= (Liquid savings/monthly expenses) - (Salary/14 lakh)

Answer these questions

- what's the worst that can happen?
- what action shall i take to resolve the worst case scenario
- what will happen if I stop walking this path

Rule no 4: 30x7, Ownership Shift
30 years of corporate experience can be converted into 7 years of ownership projects

He gives examples of his yoga training and how the principles of Sravana (reading), Manasa (formulating plan) and Nidhidhyana (execution) help in every sphere.

10x thinking 

Rule no 5. 1, 1, 1 rule 

One hour of Exercise, meditation, reading and reflection

He also gives the 2,2,2 solution - add 2 sattvic foods (green vegetables, juices), regulate 2 rajasic foods (coffee and sugar), eliminate 2 tamasic foods (bread and meat)

Rule no 6: 90% Failing and 100% Learning

List past failures, STOP elements that were unsuccessful, Do what succeeded, Incorporate differently what you can next time

Rule 7. - 50/30/20 Investing rule

50% - on needs (make growth a need)
30 - wants (choose experiences over possessions)
20 - savings


Part B - Step by Step Ownership Kit

Phase 0 - Idea Validation
1) Finding game changing Ownership Idea 

Selective power reading - Books like Zero to one, Lean Startup, Building habit-forming products, Measure what matters, Blogs like Masters of Scale 
Product fit - look for flow
Evaluation - internal and external - magnitude (millions) and depth (fundamental need)

2) How to raise funding with no product

Create a Low-Fidelity Prototype(14 days)
Get first paying customers to create a category (14 days)
Reach out to VCs and close the deal (30 days) 

3) How to write a successful pitch deck

Company vision and Results (your personal story, growth and performance vs plan, category creation, consumer love)
Market Opportunity (size, why now, tech disruption, competitive differentiation)
Funding request (unit economics, 3 year growth strategy, application of funds, management team)

4) How companies are valued

Always present a big and obvious vision


Phase 1 - 10X product

5)  How to start with no co-founder

One great hire can change the company.
Follow 3, 3, 3 rule (three recruiters, three interview questions (areas of improvement, where can our business model go wrong,what are you reading/learning now) , three references)
6) How to find product-market fit fast

50-50-50

50% NPS
50% revenue from referrals
50% renewal rates

Phase 2 and 3 - Systems set up and scaling
7) How to scale a company 

Three tools -
Your management dashboard (measure every metric daily, have an owner for each metric, review every metric daily)
Your organisation structure (create legends)
Your systems (are they as simple as you can make them)

As you can see from the brief details above you know how beautifully Karan has articulated all his learning and presented them to anyone aspiring to become an entrepreneur. Read the book and you will get a deep insight into how honestly he shares his failures and mistakes so you don't have to do them again - his way of measuring success, he constant desire to find something deeper within. Like I said before its Pure Gold and I know I will be gifting it, recommending it to many young entrepreneurs who have ideas but do not have the know how.
   


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